Aarp Medsupp Rate Increase

[axeman462]

I wouldn't call them because of a 2% increase. If they've had a supplement for a couple of years, they know to expect increases and will be happy with an increase of 2%.

Good to know, thank you.

for future reference, at what point would you think a phone call would be needed? 7%? 5%? 10%?

 

[goillini52]

Good to know, thank you.

for future reference, at what point would you think a phone call would be needed? 7%? 5%? 10%?

Anything over 7%...and you should give them the opportunity to switch to a company with a lower premium.

 

[tins]

Good to know, thank you.

for future reference, at what point would you think a phone call would be needed? 7%? 5%? 10%?

I'd only call if it were 10-15% and only if you already have a lower cost Supp to roll them over to, if they ask.

 

[DS4]

If someone complains about a +2.6% increase, you probably don't want them as clients.

 

[yogooglethis]

ok now i'm confused. the "annual rate increase" email I got was referring to the birthday increase?
I was under the impression that it was an additional rate increase to the birthday increase...

I always tell the customer at the time of sale to expect an annual increase when they get a year older. But the email I got sounded like it is an additional increase. It states "annual increase effective January 1, 2014"...

Prepare them for the small annual increase due to medical cost inflation and use it as a selling point.AARP/UHC has had the lowest rates in most age bands in most areas of Florida for the last 10 years and their rate stability is stellar.

BCBS the closest competitor in rates was until a few years ago had much higher rates than AARP/UHC for standard Med supps.I would rather have a carrier that has a long consistent trend of small incremental increases than one that had one big sudden premium decrease to get to a competitive position in premium rates -another selling point of the AARP/UHC Med supp. if you can't sell BCBS

Plan F rate history for Florida (area 2 ) NT age 65 (rounded off nearest dollar)

2004-2007 149.00
2008 155.00
2009 162.00
2010 167.00
2011 172.00
2012 172.00
2013 179.00
2014 184.00

 

[rousemark]

As folks have said, you should expect an annual across the board rate increase on most medical supplement business. If the policy is an attained age policy, that would be in addition to the "birthday rate" increase. The only thing that gets me is my wife's company increased this year without any notice to us that they were going to draft a higher amount. Didn't bother me all that much but I hate to have a lot of clients receive an increase in their draft amount without notice.

On the other hand, I am going to get a rare decrease this year on mine because EL&C reduced their rates earlier in the year.

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Good to know, thank you.

for future reference, at what point would you think a phone call would be needed? 7%? 5%? 10%?

Never hurts to stay in touch with clients. You could always call saying, "Good news.. As you know your medicare supplement increases your coverage automatically whenever medicare increase the deductible amounts you would have to pay. While most companies normally increase their rates by 5% or more each year, your AARP is only increasing their rate 2% this year to help pay for the increased coverage so you still have one of the lowest rates available to you.

BTW, MS. Jones, I have been helping a lot of my clients plan for their final expense and burial coverages.. Is this something we could meet and discuss for about 5 minutes on Tuesday?"

 

[goillini52]

As folks have said, you should expect an annual across the board rate increase on most medical supplement business. If the policy is an attained age policy, that would be in addition to the "birthday rate" increase. The only thing that gets me is my wife's company increased this year without any notice to us that they were going to draft a higher amount. Didn't bother me all that much but I hate to have a lot of clients receive an increase in their draft amount without notice.

On the other hand, I am going to get a rare decrease this year on mine because EL&C reduced their rates earlier in the year.

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I've always been under the impression they had to give you 30 days notice to increase a bank draft.

 

[rousemark]

I've always been under the impression they had to give you 30 days notice to increase a bank draft.

If they did, we didn't receive it.... Went up from $97 to $106 .. Could have just been the attained age increase and they consider the policy schedule as having provided notice but in the past, every company I have dealt with has sent out a notice telling what the new draft amount will be.